Auto Used Cars For Sale

AUTO FINANCING


There are many ways to finance your car. The following are advantage and disadvantage about each of them:


Auto Financing through Car Dealership

Advantages: Convenience, fast, sometimes competitive


Disadvantages: Usually a little bit higher than bank loan.


Auto Financing through Bank or Credit Union

Advantages: Competitive interest rates, auto loans are usually simple interest loans (interest spread evenly throughout the term of the loan)


Disadvantages: Not as convenient as dealership financing, have to apply at the bank.


Auto Financing through Online Financial Institution

Advantages: Usually competitive rates, fast, easy


Disadvantages: Not a personal service; you need to read all the fine prints


Auto Financing through Home Equity Loan

Advantages: You may deduct some of the interest from your taxes; competitive rates


Disadvantages: You are adding your home to the risk.


Auto Financing through Family Member or Friend

Advantages: Since this is based on your past and current relationship it is flexible; competitive rates based on current bank rate.


Disadvantages: Could harm a good relationship

 

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